Hi guice,
I bought 100 shares of sbi for 300 rs few months back. Then sbi went down. So I bought again 100 shares at 200 rs. Now SBI is at 250. So I wanted to sell off 100 shares. But I don’t want to sell that 300 rs wale shares as I will be in loss. But I want to sell shares that I bought at 200. So that I can book 50 rs profit.
Traders should be given option to choose which shares they want to sell. But I am afraid now as if I sell 100 share Zerodha may deduct that 300 rs sbi shares and force me to book 50 rs loss.
Maddy
The original issue is that
“’ I had a short sell position for 11000 CE and than I decided to buy a fresh 11000CE long position but system automatically squared off my short position …moment I hit buy call option …”’
PLS TEACH ME
ORIGINALLY SHORT 11000 CE
NEW ORDER IS BUY 11000 CE
WILL U NOT CALL THIS “SQUARE OFF”’
NEXT
WILL U NOT CALL 1"1000 "AS STRIKE.
PLS TEACH THE NOMENCLATURE .
AFTER “15 HRS” , I MEANT AUTO SQ OFF @3.20PM.
It’s all your fault LOL. You could have bought different CE. If you put a buy order and it gets executed automatically your existing short position will be closed off of the same CE as you had already sold the same CE.
Now I am getting what you want to say.
B4 3:20 if you have an MiS position you already get the chance of putting sq off order as mkt or lmt at ur desired price.
But the demand that this should be there at auto sq off at 3.20 is never possible.
This is basic supply and demand. At 3.20 YOU are in need and hurry to sq off, so you have no choice to set the conditions, many a times market is very volatile in last 10 15 mins. It is highly possible that your order never gets filled. So nope not possible bro
Your definition of sq off and strike is right, i think.
But I really don’t know what you meant by
“present case existing short position is to be squared off for the same strike”
If you have bought 11000 CE then you will need to sell 11000 ce only to sq off that position.
Plz elaborate your above statement with example.
Suppose if I sell 11000 PE tomorrow and nifty falls then I will be in loss. Now nifty goes to 10600. And I need to sq off that position. Do you want that the trader should be given choice of buying 10600 PE instead of 11000 PE so as to sq off existing 11000 PE position?
@curiousvi:
Technically, what you say about Buy / Square off is right. But if your short CE is not squared off, you need to keep the margins for your short CE.
I am at a loss to understand in what difference it makes.
There is a usual concept across brokers called FIFO (First In First Out). Means if u average a share at lower prices and want to sell some of them, sell out qty deduction will be from those which were bought first at first buy price. No choice.
Lets say you were short 1 lot and you want to go directly to 1 lot long then you should have bought 2 lots.
How are you calculating your loss. If zerodha lets say did not call it square off and showed both the position long and short with equal number of lots then the change in price would not have affected your profit which was the case now as well
